A tax accountant specialising in cryptocurrencies says IRD is being relentless in its pursuit of taxes from profits made trading digital currencies such as Bitcoin. From April, the Inland Revenue has been collecting all data from crypto-asset platforms, over what New Zealand traders are doing. And with that it, identified 355,000 unique crypto-asset users in New Zealand – who have undertaken 57-million transactions, at an estimated value of $36 billion. Tax is due on any profit from a trade, in the tax year it was made – even if values drop afterward. 

Given the volatility of crypto, this can lead a large tax bill on assets that subsequently decline in value significantly. Accountant Tim Doyle says the IRD is now sending…